E*Trade Group Inc. Monday launched the first phase of a cross border trading network by giving customers in Sweden the ability to buy and sell U.S. equities online in real-time.
Judy Balint, chief international officer of E*Trade Group Inc.
, said the company is leveling the playing field for individual investors by offering a low cost, simple way to invest internationally.
“The network is an integral part of E*Trade’s global business objective which is to provide investors around the world with an online international trading capability that allows them to research and make investments anytime, from any device, anywhere in the world,” Balint said.
E*Trade said the cross border trading network seamlessly handles the execution, clearing and settlement of the trades while simultaneously processing the foreign exchange transactions. It is based on straight through processing, meaning order routing, corporate actions, record keeping and reconciliation of trades are handled electronically.
The first phase of the network is based on proprietary technology developed by E*Trade. It is supported by an international infrastructure developed by E*Trade/TIR, which includes six dealing offices around the world providing 24-hour coverage of the markets from New York, London, Hong Kong, Tokyo, Melbourne and Manila. UBS Warburg, a business group of UBS AG, is providing the live foreign exchange pricing and execution of the foreign exchange transactions via a new Business-to-Business Foreign Exchange transactional platform operating under the name Fx2B.
E*Trade said the network is inherently scalable and cost-efficient and will ultimately link 20 of the top international equities markets.
E*Trade decided to launch the program in Sweden because more than 45 percent of Swedes are online and more than 50 percent invest in the equities markets.